The broad index is now less than 2% below its all-time high.
Megacap stocks in the S&P 500 have seen mixed performance so far this year, but their shares are outperforming the index's smallest companies, according to Bespoke Investment Group.
Investors shouldn't be lulled into a sense of complacency, as the record high for the S&P 500 could be the next resistance level to watch.
AI-driven productivity and profitability are fueling a 1999-style melt-up, with S&P 500 top holdings set for 18% revenue growth in 2025. Despite tariff noise, the U.S. economic backdrop is stable, with strong personal income, resilient consumer spending, and falling recession risk. Q1 results confirm broad-based earnings strength: 78% of S&P 500 companies beat estimates, margins are expanding, and forward EPS estimates remain constructive.
Large, sophisticated investors appear to be embracing the rally in U.S. stocks, after being “risk-wary until very recently,” according to DataTrek Research.
“Bulls might find frustration in the lack of upside movement the past several sessions, especially after the bullish ‘outside day' on May 19 that has historically produced bullish price action two weeks after a signal
Investors are left with a market where they should keep looking for “babies that get thrown out with the bathwater,” when market pullbacks occur.
Morgan Stanley identifies an improving rate of change in earnings-per-share revisions – the net proportion of analysts raising rather than lowering profit estimates across the S&P 500 – as the key catalyst for equities behind a better second half in 2025.
Robinhood Markets' stock was falling in after-hours trading Friday.
The S&P 500 closed above 6000 for the first time since mid-February. The index posted its second consecutive weekly gain, finishing up 1.5% from the previous Friday, and is now sitting 2.34% below its record close from February 19th, 2025.
It doesn't have the same ring to it as Dow 10,000 — but a close back above 6,000 for the S&P 500 would do a lot to affirm bulls.
Stock markets worldwide are breaking records. That's just when you want to be the most careful.